DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Annual Contract for Compressed Natural Gas Fuel Facility Operations and Maintenance Services
SUMMARY:
This Ordinance authorizes a contract with Clean Energy dba California Clean Energy, Inc. to operate, maintain, and repair City-owned CNG refueling facility that services the City’s CNG refuse truck fleet for an estimated annual amount of $144,000.00 for an initial two year term, with two additional one-year renewal options. Funding is available through the FY 2018 Solid Waste Operating and Maintenance Fund.
BACKGROUND INFORMATION:
Submitted for Council consideration and action is a proposal submitted by Clean Energy dba California Clean Energy, Inc. (Clean Energy) to operate, maintain, and repair a CNG refueling facility that services the City’s CNG refuse truck fleet. The City owns the CNG station that was built in 2008 to refuel Solid Waste Management refuse trucks. The natural gas used by the station is supplied by CPS Energy and is paid directly by the City. The awarded respondent is responsible for preventive equipment maintenance and performing all repairs and equipment replacement to ensure the station remains in continuous operation. The awarded respondent has the responsibility to bring the deficient station equipment back into operation within two hours of a failure under all circumstances by either repair or replacement (i.e. mobile compressor). The awarded respondent must also provide a backup compressor that shall remain on site at all times and shall provide its own station monitoring system and devices to remotely monitor station temperatures and pressures.
Clean Energy currently provides the services to operate, maintain, and repair the CNG station to the City under the current contract that expires December 31, 2017.
A Request for Competitive Sealed Proposals (RFCSP) for “Compressed Natural Gas Fuel Facility for Operations and Maintenance Services” (RFCSP 17-085, 6100009178) was advertised on August 25, 2017 and September 1, 2017 in the SA Legal News dba The Hartbeat, on the City's website, City’s e-Procurement portal, on the TVSA channel, and distributed by email to a list of potential respondents identified by the Building and Equipment Services Department. One response to the RFCSP was received on September 29, 2017 from Clean Energy.
An Evaluation Committee that included representatives from the Solid Waste Management Department and Building and Equipment Services Department evaluated the one submission. The proposal was evaluated on the published evaluation criteria in the RFCSP, which included: Experience, Background and Qualifications, Proposed Plan and Price. After the evaluation committee reviewed and discussed the proposal, Clean Energy was recommended for award by consensus of the evaluation committee.
The term of the contract is from January 1, 2018 through December 31, 2019, with two, one-year renewal options.
ISSUE:
The Small Business Economic Development Advocacy (SBEDA) Ordinance requirements were waived due to the lack of small, minority, and/or women businesses available to provide these goods and services.
This contract is an exception to the Local Preference Program.
The Veteran-Owned Small Business Preference Program does not apply to non-professional service contracts, so no preference points were applied to this contract.
ALTERNATIVES:
Should this contract not be approved, the refueling facility would be required to operate without the benefit of a full maintenance and repair agreement.
The Building and Equipment Services Department could procure repair services to the equipment on an as needed basis but any lengthy downtime at the refueling facility could impact refuse collection services and the cost could increase due to non-contract procurement.
FISCAL IMPACT:
If approved, this ordinance would authorize a contract with Clean Energy for an amount of $144,000.00 annually across two years in the FY 2018 Solid Waste Operating and Maintenance Fund. The Solid Waste Management Department will have authorization to encumber funds with a purchase order in accordance with the contract.
RECOMMENDATION:
Staff recommends the approval of this contract with Clean Energy dba California Clean Energy, Inc. to provide the City of San Antonio with CNG fuel facility operations and maintenance services in an estimated amount of $144,000.00 annually.
This contract is procured by means of Request for Competitive Sealed Proposal and a Contracts Disclosure Form is required.